Which of the Following Describes a Barrier to Entry

question 161

Multiple Choice

Which of the following describes a barrier to entry?

• A) something that establishes a barrier to expanding output
• B) anything that protects a firm from the arrival of new competitors
• C) a government regulation that bars a monopoly from earning an economic profit
• D) firms already in the market incurring economic losses so that no new firm wants to enter the market
• E) Firms are legally prohibited from exiting the market in order to enter another market.

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Definitions:

Inventory Reminder Kit

A system or tool designed to remind individuals or businesses to restock or reorder inventory items.

Reorder Card

A card or form used to facilitate the reordering of products or supplies once they run low or out of stock.

Unit Price

The total price of a package divided by the number of items that comprise the package.

Purchase Price

The amount of money paid to buy goods or services.